Full Year 2019 Financial Results Core Net Income of ₱15.6 Billion Caps Decade of Uninterrupted Earnings Growth
26th February 2020
SUSTAINABILITY PROGRESS IN 2019
Metro Pacific Investments Corporation’s (“MPIC”) focus on infrastructure investment has been intended to boost the infrastructure capacity of the country and provide inclusive access to people of all income levels to power, water and transportation solutions.
Recapped below are some of the Group’s initiatives in 2019 with regard to sustainability and the environment.
OPERATIONS HIGHLIGHTS: TOLLROADS
Metro Pacific Tollways Corporation (“MPTC”) recorded Core Net Income of ₱5.3 billion in 2019, an 18% increase from ₱4.5 billion a year earlier, as a result of higher traffic on domestic roads and tariff adjustments in NLEX, SCTEX and CAVITEX, offset by lower traffic on our regional roads and higher borrowing costs. Overall, MPTC’s system-wide vehicle entries, including both our domestic and regional road networks, averaged 947,708 a day in 2019 versus 913,101 in 2018.
Tollroads in the Philippines:
Average daily vehicle entries on all three of our domestic tollways (NLEX, CAVITEX and SCTEX) rose 13% to 535,503 in 2019 compared with 474,529 in 2018.
In 2019, MPTC opened three road developments – (i) the NLEX Harbor Link Segment 10 in February; (ii) in July, the first section of CAVITEX C5 South Link, the 2.2 – kilometer flyover crossing South Luzon Expressway (SLEX) traversing Taguig and Pasay City; and (iii) in October, the first 10.7 km of the Cavite-Laguna Expressway (CALAX). The first subsection of the CALAX, which received authority to start full commercial operations on 11th February 2020, provides travelers with an alternative route between Sta. RosaTagaytay Road and Mamplasan Road, helping to decongest Aguinaldo hi-way and Sta. Rosa-Tagaytay road.
C3-R10 Section of NLEX Harbor Link Segment 10, the elevated expressway that provides direct access between R10 in Navotas City and NLEX, had a partial opening in February 2020. MPTC is on track to fully operationalize the entire C3-R10 Section by March 2020. With full completion of this project, travel time from the Port Area to NLEX will be reduced to 10 minutes, significantly benefitting the transport logistics industry as cargo trucks are 7 spared from the truck ban and congestion on local roads.
Meanwhile, construction continues on MPTC’s other road projects – the NLEX Radial Road 10, remaining portions of the CAVITEX C5 South Link, CALAX, and the Cebu Cordova Link Expressway. Our tollways management is focused on speeding up Right of Way acquisition to meet Target Completion dates.
Targeted completion of our toll road projects currently stands as follows:
MPTC expects to spend an additional ₱25 billion on building roads if it secures the CaviteTagaytay-Batangas Expressway (CTBEx), for which it was awarded Original Proponent status. The final award of the CTBEx Project will be subject to a Swiss Challenge expected before the second quarter of 2020.
In 2019, MPTC also made meaningful progress on regulatory matters on our toll roads with the approval and implementation of the new toll rate matrices for NLEX, SCTEX, CAVITEX R-1 and C5 South Link Express Way. The new toll rate matrix for the NLEX addresses toll increases due in 2012 and 2014, albeit on a staggered basis, and also includes recovery of investment in the NLEX Harbor Link Segment 10. The resolution of various regulatory matters encourages us to remain on track with investment programs geared towards increasing the productivity of the economy.
Tollroads outside the Philippines:
Average daily vehicle entries for the toll investments outside the Philippines declined 6% to 412,205 in 2019 compared with 438,572 in 2018. Lower traffic volumes on DMT (Bangkok) and PT Nusantara (Indonesia) were due to construction and road integration within their concession areas.
In September 2019, MPTC increased its effective ownership of PT Margautama Nusantara (“MUN”) from 56.2% to 81.9%. MUN is PT Nusantara’s holding company for toll roads investment.